Russian Central Bank cut its key rate to 15% per annum – BBC Russian

Russian Central Bank cut its key rate to 15% per annum – BBC Russian

• January 30, 2015

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CB Chairman Nabiullina linked with lowering rates of inflation slowdown

Bank of Russia lowered its key rate by 2 percentage points – from 17% to 15%. According to the financial regulator, the decline in economic activity has weakened inflationary pressures.

“According to the forecast of the Bank of Russia, the growth rate of consumer prices fell to below 10% in January 2016,” – said in a statement.

On this news ruble continued to decline: immediately after the announcement Bank solutions in trading on the MICEX dollar jumped above 70 rubles, the euro reached the mark of 80 rubles.

The Board of the Central Bank believes that the surge in inflation observed in Russia, caused by the rapid adjustment of prices to the weakening of the ruble occurring.

In this regard, the Russian regulator expects to reduce inflation.

panic shot down?

“Slower growth in consumer prices will contribute to low aggregate demand while maintaining the total output of goods and services below potential, as well as moderately tight fiscal policy costs “- say the Bank of Russia.

At the same time, the Central Bank forecast a decline of Russia’s GDP by 3.2% in the first six months of 2015.

According to the forecast of the Bank of Russia, the rate of growth of consumer prices to fall below 10% in January 2016.

At the end of 2014, inflation was 11.4%, core inflation – 11,2%.

December 15 Bank of Russia raised its key interest rate to 17%.

The Central Bank explained his decision by the need to bring down the panic on the currency market, due to which the ruble for one day fell by 10%.